! 6 Required information [The following information applies to the questions displayed below.) The following information is provided for each Investment Center Part 2 of 2 Investment Center Cameras Phones Computers Income $ 5,250,000 2,388,000 900,000 Average Assets $ 23,600,000 19,900,000 18,800,000 oints Assume a target income of 12% of average assets. Compute residual income for each center. (Enter losses with a minus sign.) Phones $ Cameras 23,600,000 +% $ Target Income Average assets Targeted return Target income Residual Income $ 19,900,000 % 0 Phones Computers 18,800,000 % 0 Computers $ Cameras Residual income (loss) 7 A retailer pays $150,000 rent each year for its two-story building. Space in this building is occupied by five departments as shown here, Department Jewelry Cosmetics Square feet occupied 1,260 (first-floor) 2,940 (first-floor) 5 points Department Square feet occupied Housewares 1,722 (second-floor) Tools 756 (second-floor) Shoes 1,722 second-floor) The company allocates $112,500 of total rent expense to the first floor and $37,500 ta the second floor. It then allocates rent expense for each floor to the departments on that floor based on square feet occupied. Determine the rent expense to be allocated to each department Allocate these portions of total rent expense across the departments occupying each floor. First Floor Square Feet Percent of Total Cost Allocated Jewelry Department 1.260 Cosmetics Department 2,9140 Total 4.200 0% $ Becond Floor Square Feet Percent of Total Cont Allocated Housewares Department % Tools Department % Shoes Department X Totals $ ON